MEHRAN UNIVERSITY OF ENGINEERING &

TECHNOLOGY
Mehran University Institute of Science, Technology and
Development (MUISTD) Jamshoro
MID SEMESTER ONLINE EXAMINATION- 2020
SUBJECT: Principle of marketing (section-B)
PROGRAM MBA(NBS) 20 – BATCH/ 1st SEMESTER
Dated: 11/07/2020 answer sheet

Full Name Rashid Ali jatoi

S/O Ali Akbar

Class MBA-NBS 1styear

Roll no 20S/MBA-NBS/16

Subject Principle of Marketing

Section (B)

Supervised by Dr. Iqbal Ahmed Panhwar

Institute Mehran University, Institute of science technology and

development.

Question no. 3 How marketing interventions will be effective in demand

forecasting in today’s dynamic world? Elaborate.
Answer
Expectations about future is valuable way to preserve the consistency of
demand in the marketing, in the prefect competition, entrepreneurial
and innovative era everyone is competing through the substitute, so
demand forecasting is very important today’s energetic world. Where is
customer trending what they want it is totally process of marketing.
What consumer want that what should be produced for the consumer’s
satisfaction.
When a firm create product it take a risk what will be market for the
demand. Recently main cause behind the medicine of covid-19 is this
because medicine companies don’t want to take risk, it is very expensive
contract to work on it, what will be happen for those companies who
inventing in covid-19 medicine, because this pandemic will be
automatically affectless because it is a virus and it is not certain how
much quantity of medicine produced, until they make formula of
medicine or sample what will be the condition of pandemic, in the
capitalism everyone want to invest in that which will be productive and
consistent for profit.
Current era is called marketing era because no one knows what should
be used, mind of consumer is manipulated by marketing (advertising).
King of market will be those companies, firms and producer who invest
much on advertising with respect to world. Situation is this because
supply is greater than demand so marketing is necessary.
Marketing intervention is one of the revolution in the business, if we
look the history economics, these doctrine of Physiocrates, mercantilism,
capitalism which include pre Keynesian to post Keynesian but the
marketing have positive impact upon the growth and the expansion on
the business. Marketing is just not only advertising but behind of this
there is huge research and data collection and psychology about
consumer behavior. Adam smith introduced the term of invisible in
economics which is totally belongs to marketing. In which he tried
explain trend of marketing which is automatically stabilize by the
marketing. Suppose if we need a laptop but we are new consumers than,
how we know the features of laptop which give us help to deicide either
product is purchased or not. So it marketing clarify everything between
consumers to market product. When something created which is new it
marketing which introduce new brand quickly to consumer. Simply
marketing shorten the gap between consumer to producer.
Question : no.4. Why firms Go international in their business? How
international marketing is different than domestic marketing? Please
Elaborate.
Answer

Behind the international trade there is two very important theories of

David Recordo and Adam which are comparative and absolute
advantages. Countries do trade because they differ in natural resource
and human resource. Now I come toward the why companies go
internationally one things is common that they want to globalize the
product and want to encourage the trade this is at the macro level
advantage but at the micro level advantage company raises there
revenue, competition , investment opportunities , diversity, job creation
and new skills. Behind the every business there is only one motive
which is profit. Government also involve in the international because he
wants to promote international relation with trade partner countries.

Marketing is defined as the set of activities which are governed by the

companies to provide satisfaction to the customers through value
addition and making good relations with them, to increase their brand
value. It identifies and converts needs into products and services, so as
to satisfy their wants. There are two types of marketing namely,
domestic or home marketing and international or foreign
marketing. Domestic marketing is when commercialization of goods
and services are implemented to the home country only.

On the other hand, International marketing, as the name suggests, is the

type of marketing which is stretched across several countries in the
world, or beyond the border of country i.e. the marketing of products
and services is done globally.

Below I have define the important factor that illustrate the how domestic
and international markets varies to each other.

1) Production, price, place and promotion activities within the

boundary of country is domestic marketing, and same practices
outside of country is called international marketing
2) Domestic marketing network is small which is limited in the home
country but foreign market is broad network which is unlimited
throughout the world.

3) I n domestic marketing there is less influence as compared to

international marketing because the company has deal with the
rules and regulation different countries.

4) In domestic marketing, business operation are done in one country

only. On other hand, business operations conducted in multiple
countries in the foreign market.

5) In international marketing there huge opportunities because

countries are diverse in the talent, technology, resource, culture.
Which is limited and absent in the home country. In the sense of
developing country here is limited skill and technology with
respect to advance country.

6) The risk and challenges factor is very high in the international

country because it is based on economic stability of country which
include exchange rate and specialisation and also socio-cultural
difference which considered during fixing the price of a
commodity or product. Risk and challenges is less in home
country.

7) Domestic marketing can be run through moderate financial

position but we need huge investment for the international
marketing.

8) It is difficult to raise the capital in foregn country because there is

problem of trust factor but in the home country trust factor is built
easy to raise the capital.

9) In the domestic marketing we interact same nature, nationality,

psychology, culture and religion’s people but in the international
marketing we need standardised talent to manipulate the people
mind.

10) Research and development factor is should be very active in

the international market due to lack of familiarity of trends in
people international country. Which is easy to predict in the home
country.
Conclusion

After highlighting the differences in the two scenario’s, we find brief

conclusion that the world itself is a market, and that is why the guiding
principles are versatile. It does not make any change that where the
principles are applied i.e. in a local or a global market. The basic cause of
the difference between domestic and international marketing is the area
of its implication and the market conditions.

The end.